Reform Of The Rmb Exchange Rate System, Commercial Bank Foreign Exchange Risk Management

The paper discusses how to apply the advanced foreign exchange administration method and technology of the international industry in the Chinese commercial bank, for the innovation and management of the foreign exchange service industry, when China foreign exchange center put foreign currency exchange service into the foreign currency exchange as the market system, and two China-investing banks are fronted with foreign exchange risks when they have been the first test market maker. The meaning of this article is to give proposals different from the conventional risk administration to the field of foreign exchange administration in a complete open system of RMB exchange rate.There are many monographs and textbook both at home and broad, most of which focus on the cause, sort, character of foreign exchange, the risk management tools, the computation of foreign exchange, the strategy and evaluation of foreign exchange management, and the foreign administration technology for both enterprises and bank industry. Most of the foreign works focus mainly on the development and research of the most advanced technology of risk management, to meet the need of the developed international foreign exchange market and the risk management, which provide powerful tools for the commercial banks'management of foreign exchange risks in the innovation of foreign exchange ramifications and the measure and control of risks.China's exchange rate system reform targets on the complete realization of free exchange of RMB and the establishment of floating rate system. With the faster progress of RMB exchange rate system, the commercial banks which are used to operate on the conventional system of exchange, settlement and sales, are facing the foreign exchange open position exposure. For instance, there could be a higher risk for both bank...